Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: Arnie Doolittle who wrote (6274)	5/22/1998 1:42:00 PM
From: Silicon Trader	Respond to of 10227

I agree with you that exchange differences are huge. GO NRAG MBA GO NXTL

To: Arnie Doolittle who wrote (6274)	5/23/1998 10:39:00 AM
From: Frederick Smart	Read Replies (2) \| Respond to of 10227

Arnie: >>... I'm not old enough to know if that's true but I do know that there is a fundamental difference between the way the NASDAQ mm's operate and the way the NYSE auction works. >> Much has changed in the past 1-2 years. NASDAQ is becoming more auction-like and open while embracing more technology than you or anyone can point to on the NYSE. The reason why NYSE seats are $2 mil has to do with more than just high volumes. Over the past 10 years I have been very active in the securities industry on the subject of quality, service and fairness when it comes to electronic executions. A division of my new company, Smart Bandwidth, is dedicated to this subject: Smart Market Systems and Smart Audit Services has been in beta with two large national brokerage firms on a product that measures the quality and service of executions across the entire universe of NASDAQ mm's and listed specialists and listed OTC dealers. I have organized conferences, worked with leading academics, exchanges and broker dealers as we have attempted to more fully understand the inside audit story of what really happens when electronic trades get executed. This week we were in DC to inform the regulators of our plans. We began introducing our product to select broker dealers during our trip and got a 100% response rate. Our product giives trading, compliance and operational execs at participating brokerage firms the tools, data and analysis they need to manage their electronic orderflow across the entire range of destinations their systems may be pointing to - on T+1 (trade date +1) and soon in real-time. We have a blazing fast tickerplant middleware comprised of object libraries that will outvendor the big boys in terms of quote/trade dissemination. We got a huge contract job with an international trading organization recently and are in cue as a finalist on a national stock exchange to replace an existing tickerplant infrastructure. Quote latencies are averaging 2-4 seconds in busy markets due to legacy systems that can't handle the huge volumes of quote changes and trades. We will be lashing our audit service onto this tickerplant technology to produce the industries first real-time quality filter. On top of this ticketplant and audit infrastructure we we are building web and IP-based trading tools and systems for professional traders, market makers and broker dealers to come together in defined business relationships - audited by the system, etc. As for the underlying audit infrastructure, this product is entirely independent from my front-end application services for we need objectivity, neutrality and independence. I have some academics and some very good programmers working to develop a range of products and services that will help broker dealers take control of their orderflow inputs/outputs, etc. The SEC and NASDR is sending a very strong signal to the industry that broker dealers - not just the Self Regulatory Organizations (SROs) - must take the ball as far as exercising a program of regular, rigorous and ongoing due diligence in the examination of the services relating to executions, etc. One last comment on the NYSE to keep this all in perspective: The NYSE is the only institution which over the past 3-4 years HAS NOT been willing to share data with academics or consultants interested in helping broker dealers understand the quality and service of their executions. The DOJ and NY State recently came out with the results of an investigation concerning frontrunning and other illegal practices conducted by NYSE floor brokers. The NYSE had nothing to do with discovering this and there are several brokers who may be doing time for this at some point. We won't know the extent of these practices until the investigations are completed. I will not comment any further as I think its really in the best interest of the end client to judge exactly what's going on. Eventually we will be providing the tools necessary for them to do so via the web at participating broker dealers - ie. a complete report card audit trail on each execution. Despite my funny stories on the road I am dead serious when it comes to my interest in taking the "high road" on this subject. Volumes will continue to skyrocket thanks to the internet. The US National Market System is being sorely tested by this blazing online/internet business. The SEC is sending signals which support a more complex system that involves alternative systems - some proprietary, some open and IP/web-based - which will be built on new trade message protocols (FIX) and digital packet transmission technologies (TCP/IP), etc. The picture will look more high-tech and confusing as we move forward and the real story about just what's happening - or not happening - on each competing system or venue will eventually told. Just food for thought rRespectfully submitted by your humble Nextel partner. As for Nextel, its a screaming buy at these levels. Buy now or wait for the retest thrust lower to potential new lows after an initial bounce higher. IMPORTANT NOTE: As for my connection to Nextel's technology, etc. we are working a deal with a Hollywood movie studio which will involve them leasing/renting 30-40 phones. We have a whole package we are working on which involves connections between the stars and local kids as aided by volunteers. I will be seeking the help of any Nextel investors who want to volunteer for this project. The shooting begins in 3-4 weeks. I am also working with major public organizations here in Chicago involving ways to use Nextel's technology to connect people in need with mentors, businesses. etc. On my flight to DC this past Monday I sat next to Congressman Danny Davis - a 30 year veteran of the house - who's district covers the entire downtown of Chicago, the projects, all major city hospitals, universities, etc. He was very receptive my enthusiasm and pitch about using technology to reconnect people with their communities, making streets safer places to live and walk, helping one another, etc. The gentleman seated in between Danny and myself was a senoir executive with the United Methodist Church headquartered in Evanston IL. Nextel's technology WILL be making a difference in not only businesses but in the day to day lives of people. I am spreading this vision which I strongly believe in. Enough of this wind..... Take care everyone..... Good luck!